Microsoft cuts US jobs while expanding H-1B hires, sparking Trump criticism
Microsoft announced another round of layoffs at Xbox, dismissing thousands of American workers while continuing to sponsor thousands of H-1B visas for foreign staff.
Microsoft’s Xbox division announced a fresh wave of layoffs, adding to a series of cuts that have removed thousands of American workers from the payroll. Earlier this summer the firm let go of nearly 5,000 staff after securing permission to bring in more than 2,000 H-1B visa holders, and in 2025 it eliminated 15,000 jobs while sponsoring 8,000 foreign workers. The moves have drawn fire from President Donald Trump, who says they erode wages and conflict with his America-First and Worker-First priorities.
Trump’s administration has responded with an executive order tightening scrutiny of H-1B petitions and renewing a $100,000 application fee. Microsoft’s Xbox chief, Asha Sharma, also co-leads a Federal Reserve task force on AI and jobs, raising questions about the company’s commitment to domestic employment. Critics note that studio closures in Texas and Los Angeles have further reduced U.S. development capacity, while game prices and subscription fees continue to rise.
Why it matters
The layoffs and foreign hiring raise concerns about U.S. job security and wage pressure amid a national push for America-First policies.
In this story
